THE WEALTH TRANSFER

Four years ago, sociologist Paul Schervish accomplished a
mathematical feat that proved to be more controversial than he ever
imagined. He and his colleagues at Boston College calculated the
sum of all American inheritances to be distributed over the next
half-century. The amount was $41 trillion. Schervish's research
seemed especially good news for the Baby Boomers, who stood to gain
$7.2 trillion over the next 50 years â€” roughly $92,000 per
person, by Schervish's calculation.

Although Schervish still stands by his estimates, in this
month's cover story, Contributing Editor Michael J. Weiss describes
how the impending generational transfer of wealth in America may be
more myth than reality. In fact, Weiss reports, most Baby Boomers
are in for a rude awakening. Not only has the size of their future
windfall been vastly inflated, so too has the number of Boomers
likely to receive any inheritance at all.

â€œA weak economy, a sputtering stock market and a Social
Security system that may run dry are all fueling skepticism
regarding the size of the transfer of wealth from Boomers' parents
to their children,â€? Weiss writes. â€œSince 2001, the
stock market meltdown has erased some $8 trillion in shareholder
wealth, slashing the net worth of Boomers' parents. Plus, Americans
are living longer and increasingly tapping their nest eggs to fund
their own extended retirements. Despite heated debate about the
exact size of the bequest, there's universal agreement on one stark
point: The vast majority of Boomers will never inherit one single
dime of inheritance.â€?

Even so, a small percentage of Boomers are expected to claim a
legacy. And, despite the newly deflated estimates of the wealth
transfer, businesses are still vying to help Boomers spend their
parents' money. In his article, â€œGreat Expectations,â€?
Weiss offers up several industries most likely to benefit. Look for
his story on page 26.

This month, there's a transfer of sorts taking place at
American Demographics as well. After three years as editor,
I'm leaving the magazine. Although a successor has yet to be named,
I'd like to take the opportunity to thank everyone I've worked with
over the years â€” especially our readers. We've always
encouraged an open forum with you, and have been delighted when
you've made the extra effort to contact us. It has been a privilege
to edit a magazine whose readers are as passionate about the
material as we are.

One parting note: Editors are only as good as the people they
work with. We have a small but hardworking staff of writers,
editors and designers. It's been an honor to work with them over
the past three years. They, and our talented pool of contributors,
have provided flashes of brilliance along the way â€” for which
I am eternally grateful. To all, thank you for your dedication, and
best wishes.